PXP Energy Corp. is ready to drill exploratory wells under service contract 72 (Recto Bank) next year, but remains wary of the geopolitical issue with China.
“Actually we’re ready to go, PXP by itself, in terms of exploratory wells—two wells and further surveys in the northern portion of the concession. Of course, there’s a big geopolitical issue. Will China agree to an independent effort by SC 72 PXP to enter that territory and do work? I can’t answer that question,” PXP Energy chairman Manuel Pangilinan said.
Following the lifting of the force majeure over SC 72 and other service contracts in the West Philippine Sea in October last year, the Department of Energy issued a notice to resume work to PXP.
PXP’s work program involves the drilling of two exploratory wells in SC 72 on or before June 2022.
Pangilinan said PXP is not a party to the discussions between the Philippines and China over the possible joint exploration in the West Philippine Sea. He said there is also no update on PXP’s discussions with China National Offshore Oil Corp.
“I think what’s happening are discussions at the government level, and we’re not a party to that. We don’t participate in that discussion directly,” Pangilinan said.
Pangilinan said that if no agreement would be reached, the next step would be uncertain. “Then, what will we do? That is a question that we have to ask ourselves,” he said.
PXP subsidiary Forum Energy through Forum GSEC 101 Ltd. operates SC 72 or Recto Bank with 70-percent participating interest.